Sports betting has managed to be one industry that is surviving the pandemic. This shows is stocks like DKNG (DraftKings).
It has benefitted immensely from the legalization of online sports betting in many states in the U.S.
In fact, DKNG stands out for having an outstanding performance this year. It is up 368.63% year to date, making the lucky shareholders ecstatic.
Given the good news, what is ahead? The stock is rising in the face of Canada’s decriminalization of single-event sports.
You can thank the Department of Justice for this favor. Billions of dollars are at stake. Plus DraftKings is poised to build a major presence in the country.
Canada is a major player in the industry as locals are said to spend about fourteen billion through illegal bookies.
To add more good news, while the company had forecasted revenues beyond analysts’ expectations at $540-$560 million, it is now projecting $750-$850 for 2021. Everyone is bullish on DKNG.
The resumption of major sports like NHL, NBA and MLB hasn’t hurt the statistics at all. In fact, Emily Flippen and Motley Fool contributor, Asit Sharma, are on record for saying that the sports-betting giant has a strong balance sheet with “a 44% year-over-year increase in revenue.”
Furthermore, the company has been able to “widen the user base and meet their needs.” DraftKings entered additional U.S. states this year and even enjoys a competitive advantage in scale and transaction volume.